OYO's $525 Million Deal: Acquiring Motel 6 and Studio 6 Brands to Expand in the US
OYO acquires iconic American budget hotel chain Motel 6 and Studio 6 brands from Blackstone Real Estate for $525 million in an all-cash transaction.
OyoMotel 6Studio 6Blackstone Real EstateHospitality IndustryReal Estate MaharashtraSep 21, 2024
The deal is expected to close in the fourth quarter of 2024, subject to customary closing conditions. OYO will leverage its comprehensive technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.
Motel 6's franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6. OYO will operate the acquired brands as a separate entity.
OYO has steadily expanded its footprint in the US since its launch in the region in 2019 and operates over 320 hotels across 35 states. In 2023, OYO added nearly 100 hotels to its US portfolio and aims to add about 250 hotels in 2024.
Frequently Asked Questions
What is the value of the deal between OYO and Blackstone Real Estate?
$525 million
What brands is OYO acquiring from Blackstone Real Estate?
Motel 6 and Studio 6 brands
What is the expected timeline for the deal to close?
Fourth quarter of 2024
How many hotels does OYO operate in the US?
Over 320 hotels across 35 states
What is the goal of OYO's acquisition of Motel 6 and Studio 6 brands?
To strengthen its international presence and expand its footprint in the US hospitality industry
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